Rethinking Retention – and Doing It

In my work as a coach and advisor to executives, top performers, and key personnel, I encountered a statement some time ago that has stayed with me:

"You know, if it weren't for you and our collaboration, I probably would have left the company."

At first, I felt flattered, but this statement made me reflect further. I decided to take a closer look at the meaning, opportunities, and risks behind it.

My primary goals in individual coaching are to build and develop the hard and soft skills of my clients. But what additional positive effects can coaching executives and individually supporting top performers and key personnel have for a company?

Let me invite you to a thought experiment. You are responsible for HR and need to fill a strategically important position.

Position vacant. Now what?

Now you have to decide: Do you initiate all the necessary recruitment measures for an external hire, or do you promote an internal candidate? Let’s assume you lean towards an internal promotion but are unsure if your desired candidate is truly ready for the new role. What arguments could support the case for accompanying coaching in this context?

Cost Efficiency and Security: Building and promoting your own leaders and preparing them for new challenges within the company is more cost-effective and reliable than hiring and onboarding external personnel.

Familiarity with Internal Structures: Filling a top position internally can be more efficient, as the promoted individual is already familiar with the company. They know the structures, key personnel, processes, company culture, business partners, and customers.

Additional Expertise: Accompanying an external professional brings additional expertise into the company, which enhances overall quality.

Long-term Investment: The costs for individual coaching or mentoring are limited in time, but the positive effects for the company have long-lasting benefits.

Motivation and Willingness to Perform: A coaching format tailored to the individual acts as an incentive, directly boosting motivation and willingness to perform.

Value Creation through Knowledge Transfer: Additional value is created when the promoted leader passes on the acquired knowledge to their own team.

Strengthening Employee Retention: Improving career opportunities within the company strengthens employee retention and loyalty.

The last point is particularly powerful in the current situation of a skilled labor shortage and high turnover rates among top performers. Combined with the challenge for companies to position themselves as attractive employers, individual coaching is becoming increasingly important. The personalized incentive and the associated recognition are becoming crucial factors for employees and executives in deciding whether to leave or stay with a company. Individual coaching and mentoring thus become effective tools for retaining top talent.

Is it worth it?

Of course, individual coaching for executives or the personalized support of key personnel by a professional coach or mentor requires both money and time. However, I am convinced that this investment is far lower and likely less risky than the overall effort associated with an external hire.

The approach of "guided internal promotion" is certainly worth it, as an experienced coach can quickly provide you with recommendations on which candidate to choose or whether you have selected the right person for the new position or business challenge.

Do you have ideas, questions, comments, or would you like to share your experiences? Feel free to contact me.